I suggest everyone fight the city/county state codes, this whole thing is an infringement on property rights.

Most people just don't realize the complexity of the tax code / laws.

@Gregory Brooks, In order to get an accurate comp for your rental, do an internet search of "homes for rent in _________ neighborhood or ________ zip code".  

All came out OK since the rules were being followed.Basically, the tax code is an honor code, and the fear of audit is there to inspire us all to adhere to the code.  

However, this seems to fly in the face of the tax code interest allocation (tracing) rules, as specified in Treasury Regulation 1.163-8T, and discussed in IRS pubs 535 & 550.

Lend only if previous improvements complied with municipal codes and permits.8.

You might be on to something here... what's your snap code I'd be interested to follow?

For example if you’re approved to rehab the electrical the city must come back and make sure everything is up to code.

I know for a fact there are people in code enforcement who are not very keen on out of town investors taking advantage of neighborhoods and trying to do short term rentals without the City's short term rental CO.

Limit is often 2 people per room but sometimes is stated as minimum bedroom space of 50sqft per person so if you have a 9x10 bedroom, that one would qualify for only one person in the room per many local code officials.Be very careful with this.